ONGC signs its first-ever term agreement under the Marketing Freedom regime with BPCL

4 Aug 2023 , 11:19 AM

In a significant move, Oil and Natural Gas Corporation Limited (ONGC) and Bharat Petroleum Corporation Limited (BPCL) have signed a term deal for the sale of crude oil from the Mumbai region, solidifying their long-standing business relationship.

The signing event took place at ONGC NBP Green Heights in Mumbai between BPCL Executive Director (IT) Manoj Heda and ONGC Executive Director (Chief Marketing) Sanjay Kumar. Also present were ED-Western Offshore C Mathavan, Mumbai region asset managers, Plant Manager Uran, and ED-Chief Commercial.

The government decided to replace the prior allocation system with free selling and pricing for local crude oil, which led to the historic contract. The first-ever e-auction of Mumbai Offshore crude oil was successfully launched by ONGC after it quickly adjusted to the new system.

With ONGC, the BPCL Mumbai refinery has been processing its crude oil since 1976. The benefit of having a pipeline connection allows BPCL to provide ONGC with efficient logistical operations.

As the dynamics of the energy market continue to change, ONGC is unwavering in its pursuit of innovation and quality in the field, solidifying its place as a significant player in India’s oil and gas sector.

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